Managing Director of International Monetary Fund (IMF), Christine Lagarde posted a blog, addressing the dull sight of the Crypto World on 13th of March, Tuesday. She enlightened the readers how the rise of the Crypto sector has brought along with it, the issues of money laundering, terrorism and economic Instability.
Christine Lagarde Warns of Crypto
In the mentioned blog post, Ms. Lagarde commented “The same reason crypto-assets like Bitcoin are so appealing is also what makes them dangerous”. This post was updated in Five languages, English, Chinese, Arabic, Japanese and Portuguese. And this clearly shows that International Monetary Fund wants this post to go viral, globally. This organization was founded after the second world War mostly on the ideas of Economist, Jon Maynard Keynes. Today, the IMF is vested with the responsibility of managing crucial crisis situations and balance the financial problem through funds known as Special Drawing Rights which values about half trillion dollars presently.
“The technology behind these assets—including blockchain—is an exciting advancement that could help revolutionize fields beyond finance. It could, for example, power financial inclusion by providing new, low-cost payment methods to those who lack bank accounts and in the process empower millions in low-income countries”, the post read.
Ms Lagarde has promoted a central bank based cryptocurrency, however she as well as the IMF does not seem to understand how the cryptocurrency works. A digital coin is not just a digital form of payment. Cryptos should be encrypted and have a ledger technology to keep record of the accounting. Central banks are centralized and cryptos aren’t and thus this could possibly not make a solution.
She states that such transactions are mostly anonymous and as a result of this money laundering and other cyber crimes are coming up. She keeps on writing about how this digital currencies are not safe and how the Central Bank arrangement would turn out to be a better choice.